On Monday, Macquarie analyst Aaron Lee increased the price target for Roblox Corp . (NYSE:RBLX) shares to $80 from the previous $76 while maintaining an Outperform rating on the stock. The adjustment follows Roblox’s strong first-quarter performance, which surpassed expectations and led to an upward revision of the company’s 2025 guidance. According to InvestingPro data, the stock has delivered an impressive 88.81% return over the past year and is currently trading near its 52-week high, though analysis suggests the stock may be overvalued at current levels.
Roblox reported significant year-over-year growth with a 31% increase in revenue and a 26% rise in daily active users (DAUs), reaching approximately 98 million. The company also saw a 30% increase in hours engaged, totaling 21.7 billion, and a 4% growth in average bookings per DAU. These robust results have prompted Roblox to raise its 2025 revenue forecast to a range of $5,285 million to $5,360 million, up from the prior estimate of $5,200 million to $5,300 million. Additionally, the adjusted EBITDA expectations for 2025 have been lifted to $1,050 million to $1,110 million, compared to the previous forecast of $1,015 million to $1,090 million. With a current market capitalization of $48.9 billion and maintaining a strong balance sheet with more cash than debt, Roblox continues to demonstrate solid growth momentum despite not yet achieving profitability.Want deeper insights into Roblox’s financial health and growth prospects? InvestingPro subscribers have access to over 30 additional financial metrics and exclusive analysis, including detailed Fair Value calculations and comprehensive Pro Research Reports.
Lee’s commentary highlighted Roblox’s ability to thrive in a challenging macroeconomic environment, noting the company’s consistent delivery on key metrics such as top-line growth, user growth, operating leverage, and engagement. The analyst also pointed out positive trends in the growth of the platform’s older demographic, expansion across various genres, and increased spending. This is reflected in the company’s impressive 30.24% revenue growth over the last twelve months, though InvestingPro analysis indicates analysts don’t expect profitability in the current year.
The analyst emphasized Roblox’s unique business model, which is less vulnerable to the production cycles that affect traditional game publishers. The model benefits from a self-reinforcing cycle of content creation and social interaction, coupled with continuous improvements to the platform, including monetization strategies, technological advancements, and AI integration.
Lee concluded that despite potential macroeconomic uncertainties and tougher comparative figures from previous years, Roblox’s first-quarter results and management’s commentary show no signs of negative impact from these factors. The analyst remains confident in Roblox’s trajectory as an attractive, long-term investment opportunity.
In other recent news, Roblox Corporation reported strong first-quarter results, exceeding expectations in bookings, revenue, and adjusted EBITDA. Canaccord Genuity raised its price target for Roblox to $84, maintaining a Buy rating, citing the company’s robust performance and strategic enhancements. Similarly, BMO Capital Markets increased its price target to $82, highlighting a notable 26% year-over-year increase in daily active users and the company’s effective monetization strategies. Needham also raised its price target to $79, maintaining a Buy rating, and noted the company’s conservative full-year guidance as a realistic target for future quarters.
Jefferies adjusted its price target to $70, maintaining a Hold rating, acknowledging Roblox’s 31% growth in bookings and a significant EBITDA margin expansion. Despite the positive first-quarter outcomes, Goldman Sachs maintained a Neutral rating with a steady price target of $63, emphasizing long-term engagement and monetization strategies as key growth drivers. The company’s strategic partnerships, such as with Google (NASDAQ:GOOGL) Ads, are expected to enhance its advertising ecosystem. These recent developments reflect a positive outlook from analysts, with varying degrees of optimism regarding Roblox’s future growth potential.
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